Tanzania: Traders refusing to use EFDs to go to jail for three years, TRA warns


8 May 2014

Businesses and trading enterprises that are by law supposed to use Electronic Fiscal Devices (EFDs) but do not will be charged 5 percent of the total amount of their collections on first warning, on the second warning of defiance, a penalty of 10 percent will be imposed and on the third time, a fine of between 1m/- and 3m/- and/or a jail term of not more than three years imprisonment will follow.

Tanzania Revenue Authority (TRA) says the directives are to be observed in accordance to set country laws as per Cap 104, subsection 2 of the TRA Act (2013) on revenue collection. Speaking to The Guardian over a telephone interview at the start of the week in Dar es Salaam, TRA’S Director for Taxpayer Services and Education Richard Kayombo warned of severe punitive measures against ‘stubborn traders’.

He also reiterated TRA’s commitment to enforce the use of EFDs with even much more vigour following President Kikwete’s recent firm remark: 

“The government is not going to reverse its stand over the mandatory use of EFDs. This is because we want to do away with unrealistic tax assessments that are based on guess work due to lack of reliable sales records on the side of the business community either due to poor record keeping or even intentional doctoring of records with the aim of evading taxes,” Kayombo went on to say urging the business community to be cooperative and comply.

The government recently made the use of EFDs compulsory as of 2010 with the first phase involving businesses registered with Value Added Tax (VAT) and those with no VAT registration followed.
There are three types of EFD machines accepted for use, Electronic Tax Register (ETR) Electronic Signature Device (ESD) and Electronic Fiscal Printer (EFP).